Investment Q&A

Q: What's up with this stock today? PR sounding all proud and confident and the stock drops,6% on heavy volume.

TIA

Q: Hello,

I have a diversified portfolio across all sectors. I recently sold most of my big losers like CXR and PHM etc. I'm now left with the following three losers: MG, ECN/EFN and AD.

I just don't know what to do with these. I'm down about 25% in each. I regret not selling CXR once it was down 25% and instead took a 75% loss and don't want to be in that position again. Should I sell any of these? MG seems to be the best company of the three, but it hasn't recovered this year like other stocks (at least not from where I bought) and now with Trump in there are a lot of fears about the auto sector, and I'm worried it will keep going downhill as NAFTA discussions begin. Anyways, I'm interested in what you think I should do with these three companies.

Q: Hi Peter and Staff
Your email this morning contemplates that EFN/ECN split is reflected in the portfolio.As the portfolio is not yet posted(I am sure it will be soon), my question I have been wondering is that for those of us who got equal number of shares in both ECN and EFN on split,we now have a lot less $ tied up in ECN than EFN. Should we continue that ratio or if we are going to continue to support both companies,should we been evening up our $ invested in each?
Thanks for all you do
Dennis

Q: Hi Peter and Team,

Can you comment on how rising interest rates will affect ECN and EFN? I was an owner of EFN before the split, so I now own both, but I was thinking of adding to my ECN position.

Thanks,

Jordan

Q: Have held this for 18 months ,been very patient as a lot of BNN analysts have liked it with the promise of "unlocking value" when the company splitting into 2 ,but they only thing that has happened really is the stocks "dropping in value" any reason why and your thoughts for the next year on these 2 companies..thanks.

Q: Looking for financial sector allocation suggestions as replacement for HCG/mortgage sector. Already have positions in EFN/ECN/CXI/BNS/SLF...any suggestions? or okay with going to 20% on tech vs current 15% 35 years old, money is all in registered accounts, little debt, and no need for money in next 10-20 years

Q: Hi 5i Team,

I have a question about Element financial EFN. Just wondering what caused the drop today. What are your thoughts going forward.
Thanks Mike

Q: I know you have answered this before, but I can't find the question. I have a nice gain after buying EFN in anticipation of the spilt and would like to know if you favour one over the other, post spilt, both or should I take a 13% profit and look elsewhere.
Thank you.

Q: Hi Peter,
Ive looked over the q&a on this split. Can you help me understand.
if the split was today...ecn is trading at 3.50 and efn is trading at 16.55. what would happen...

Q: Unfortunately I was exercised on my call options and do not hold a position on EFN presently. Going forward to maintain my port. between the 2 companies, shall I repurchase both or will 5i have a preference to one over the other?

Just wanting to reestablish a position.

Thanks

Sheldon

Q: Can you help me understand what will happen to my 500 shares of EFN, bought @ $13.91, when they split into two companies on Oct 4th. What will I end up owning?? 250 shares of each company or what?? Will I lose any value and how will they value the worth of each of the two separated companies? This is all new stuff to me. I look forward to your explanation

Thanks for your help

Q: call options are being sold today on efn. how is this possible if the stock is to be split on oct 4th into two new stocks. I was interested in selling covered calls for apr 2017.

Q: 'ECN' is trading today; is this the same ECN as is being created out of Element Financial? How is it that it can trade ahead of the split?

Q: If I sold a covered call for EFN e.g. $16 strike for 10/21 expiry, what happens vis-à-vis the proposed split if it occurs before the expiry date? How would the combined strike price be arrived at? Would you recommend avoiding the unknown and not selling the covered call?
thx; Mike

Q: Hi : what is your opinion now that shareholders approved the split in two, Element Fleet and ECN Capital. The shareholders also approved the issue of ECN shares to buy Infor. how do you see the future of these companies. I own EFN and will receive shares of both. Should I keep both ?, sell one, if so which one, or should I sell both ?
thanks !!

Q: Hi 5i team,

I am diversified in my portfolio but I need one more stock to round out my TFSA. From the companies listed can you please rank in order based on your highest conviction in the company to be able to execute shareholder value over the next 5 years.

Thanks as always,

Jon

Q: I wish to sell EFN to raise some cash over the next month. In your opinion is it best to do this before the split in early Oct. or to wait until after the split and see if the stock get a bounce post split.

Thank you for your advice

Q: Preferred Shares - A & C
Which company will they be part of and will the capital structure change?
Will they adequately serviced?

Thanks

Q: Following Efn split, do you feel that this is a good time to add this stock to my portfolio?

Q: I hold EFN in a TD Waterhouse SDRRSP account. What do I do with the current EFN shares I hold? Do I have to sell and decide which spin-off I want? If I choose to do nothing what would happen to my shares?